The page contains information about the authorisation process of the supervisory authority regarding the exemption from the application of a risk weight of 0 % for fully consolidated domestic entities within the group pursuant to Article 113 (6) CRR
Pursuant to Article 113 (6) of Council Regulation (EU) No. 575/2013 (CRR) credit institutions shall be required to request approval from the supervisory authorities for fully consolidated domestic entities within the group. A timeframe of six months shall generally apply for this procedure from the date of submission of the complete application.
Submission of complete documentation by the parent institution (in the case of a horizontal group of entities, by the consolidating entity) via the Incoming Platform – please note that the time period for the procedure shall only begin once all documentation has been submitted. The documentation to be submitted consists of:
- The application form
- A clear representation of the group of credit institutions as of the previous balance sheet date:
- See the sheet named “Beteiligung” in the accompanying template
- Additional submission of the hierarchical tree structure for the group of credit institutions
- Submission of the completely filled out accompanying template including mentioning the type of counterparty (e.g. financial institution, ancillary services undertaking)
- Additional documentation/documents to be submitted:
- A brief overview of the risk evaluation, measurement and control procedures of the superordinate parent institution, or, in the case of a horizontal group of entities of the consolidating institution, as well as information about the contractual basis, upon which the risk management for the group as a whole can be controlled by the relevant steering entity;
- Submission of the contractual basis in relation to the risk management of the group as a whole and a brief overview of the material provisions;
- Statement about the rights of intervention and available sanctions to be imposed against the counterparties in the form of a legal opinion, which certifies compliance with legislation;
- Confirmation that all counterparties have their registered office in the same member state;
- Statement about the financing arrangements for the prompt transfer of own funds or the repayment of liabilities by counterparties in the event of other difficulties arising.
The Financial Market Authority reserves the right to place additional requirements or to request additional proof from the institutions during the authorisation process.